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Analysing Car Sales Using Web Map Part 2

Last week I blogged about analysing your car sales (picking an industry at random) from a dealership on a map. I looked at comparing sales between reps by looking at where the clients lived on a map.

The concept is that we have a rich amount of data about our customers, especially when it is large ticket items and their are warranty and other ongoing commitments, not to mention the desire for repeat business. I used examples such as gender, personal or business use, age group, whether there was a trade in and so on. There is of course a lot more information available and there are also of course KPI’s. Please note that in order to do the things I’m talking about, you do not need expensive GIS software or specialist engineers. You already have the people you need, although in some cases an external consultant may help you see things from a fresh perspective.

Selling high ticket items like cars, real estate, quality furniture and furnishings is a tough business, especially in New Zealand and Australia. It’s competitive and the industries also have high staff turnover meaning that personal relationships are likely to be lost. This means that business intelligence and the ability to data mine becomes a lot more important. But at the risk of playing a broken record, finding useful information from your CRM or accounting software other than basic information is difficult. Now most companies in these industries have done business a certain way for many years and often the sales people go from one company to the next, staying in the industry and reinforce the concepts that this is the way the industry does it and we know the industry.

Our focus takes a different tack. These industries have leaders who swim against the current and use whatever technology or new ideas they can find. Are the over achievers or sales champions working harder? I would argue that most of them are working smarter rather than harder. The difference is that they look for ways to work smarter, whereas the other 95% plus use what they are given. The fact that you are reading this blog puts you in the top 10%. I’ve been told that in the industries I’m writing about here, the Pareto Principle is actually way out. They say that the best business is actually done by less than 5% of the sales people.

So what can you do as a company to improve your odds? How about trying something different? Let us help you find the low hanging fruit that has been eluding you. Lets use some business intelligence and move on. Now ideally what I am talking about would start at Head Office with the Sales Manager, Marketing Manager, Financial Controller or perhaps all of the above. Who is motivated to increase your profitability and productivity? How can you make it easy for your branches or dealerships to improve their performance?

In the last blog we talked about measuring performance at the dealership level, by the dealership. I’ve been in those offices and seen sales people going through the accounting system looking for people or companies whose leases are about to expire, or who last made a purchase 3-5 years ago and making prospecting phone calls. I’ve seen them cold calling using Yellow Pages or other directories. I’ve attended some of the sales meetings as a guest and seen the white board which shows the branch budget by model, the sales to date for the month and the stressed looks on the faces of all involved whose income and livelihood depend on achieving those targets. It’s very seat of the pants and very reactive.

Imagine if at head office, you could provide the dealerships with business intelligence that increased branch sales nationally. If you could give them information that allowed them to increase productivity and profitability and at the same time increase your brand market share. Wouldn’t it be nice to achieve the KPI’s you or the manufacturers are setting? Selling the cars (or whatever your product is) that have the higher margins, or perhaps more accessories which carry that extra margin.

How? I’m sorry but I’m going to tease you here. Have a look through the previous blogs here because a lot of the information I have to share works across multiple industries. Bookmark this page because I am going to write Part 3 of Analysing Car Sales Using Web Map some time in the next few days and give you some specific examples. Where are your potential low hanging fruit? Do you want to pick them? Jump on the school bus and drive through the opposition.

Drive through the opposition

Of course you can also contact us and discuss how we can help you or ask for a demonstration. You can also email me directly. We would also like to hear from business and franchise consultants looking to add tools to their toolbox.

Also please feel free to leave a comment or ask any questions here on the blog, we welcome your feedback.

January 26, 2011 Posted by | Auckland, Australia, Australia Maps, Business Analytics, Business Intelligence, Car Sales, competition, Data Mining, Distribution, geosmart, GIS, location based services, map tools, Mapping Applications, maps, Marketing, new zealand, new zealand maps, Real Estate, ROI, SaaS, sales territory, software, territory management, Uncategorized, Web Map, web maps | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Analysing Car Sales Using WebMap Part 1

This can apply to any segment, but lets use car sales as an example today. Lets imagine you are Sales Manager for a car dealership. You have a budget to achieve and you need to understand what is going on in your territory. You have 6 sales people, each has a unit and dollar budget and you have a budget for each model of car you have on offer.

You have got some excellent sales history, because you are selling big ticket items and you know where the people live who purchased your cars. Using the GeoSmart Business Visualisation Application you can see the locations of all the cars sold in December.

Small Car Sales

In this example, you are looking at small engine car sales from your dealership in an area of Auckland’s North Shore. This already shows you that you seem to have made sales in clusters of area, but there are other areas where you haven’t made sales of this class of vehicle.

Now lets think about other things you can do. First we can also overlay in different colours, car sales for December of your other models. You can display each model’s sales in a different colour. Now you may start to see some change, you may see that you get clusters of SUV or high end sedan sales in other areas, or you may still see gaps.

Another thing you can do as a separate view is look at all sales by one of your sales people on the map. In the same way as you did with the car models, you can assign each sales person a colour and display their sales on the map at the same time. You may again see some interesting things. Maybe one sales person is getting more sales in a particular area. He may be using a referral technique that the others can learn from. I’m being simplistic and generalist here, but there is always going to be a reason for the results you are getting and these reasons are often impossible to find using spreadsheets and tables on their own.

Another query you could run is viewing car sales per sales person by model, comparing them with other sales people per model on the map.

Given that you have sales history for each month, you could do the same sort of thing by visualising the above information by date. Assign a different colour to each month and you can then view each map and see if you can spot any trends. In your financial systems you have a wealth of information and we provide the ability to query that information and display in on the map. For example, some of the things you might query are:

  • Gender of the purchaser?
  • Age Group?
  • Have they purchased from you before?
  • What was their last car? Same brand or change? Larger or smaller?
  • Was there a trade in?
  • Was it a profitable sale?
  • Was it for work or personal use?

The industry produces statistics each month. The latest reports on the AA Website say that the top selling model for December 2010 was the Toyota Corolla, but also interesting was that second was Toyota Hilux and third was Holden Commodore. So we have small to medium sized cars as most popular, but light commercials coming second and larger sedans coming third. Obviously there is much more to it and the dealership will have much more intelligence. The key here is whether the same trend is happening in your area and how you can capitalise on that knowledge, something I will look at in further blogs.

If this is of interest, please subscribe, or bookmark this blog and if you know anyone to whom this is of interest, why not send them a link. In business we all have a wealth of reports, but it is very easy to suffer death by statistics. There is an old adage that a picture speaks a thousand words and maps are a great way of delving into your business data to find knowledge that may otherwise remain hidden.

If you have questions, or would like to know more, please feel free to contact us.

January 19, 2011 Posted by | Auckland, Business Analytics, Distribution, geosmart, GIS, lbs, location based services, map tools, Mapping Applications, maps, Marketing, new zealand, new zealand maps, Retail Profit, ROI, SaaS, Sales, sales territory, territory management, Uncategorized, Web Map, web maps | , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment